Probability Analysis

A General Manger of Harley-Davidson has to decide on the size of a new facility. The GM has narrowed the choices to two: large facility or small facility. The company has collected information on
the payoffs. It now has to decide which option is the best using probability analysis, the decision tree model, and expected monetary value.Options:Facility Demand Options Probability Actions Expected Payoffs Large Low Demand 0.4 Do Nothing ($10) Low Demand 0.4 Reduce Prices $50 High Demand 0.6 $70 Small Low Demand 0.4 $40 High Demand 0.6 Do Nothing $40 High Demand 0.6 Overtime $50 High Demand 0.6 Expand $55
Determination of chance probability and respective payoffs:Build Small: Low Demand 0.4($40)=$16High Demand 0.6($55)=$33 Build Large: Low Demand 0.4($50)=$20High Demand 0.6($70)=$42Determination of Expected Value of each alternativeBuild Small: $16+$33=$49Build Large: $20+$42=$62

It’s quick and easy to place an order. We have an efficient customer service that works 24/7 to assist you.

Why choose us?

It is true there are many other companies offering custom online writing services. What makes USAonlineessays.com unique? With the saturation of the custom online writing arena, it is imperative that customers be enlightened to choose wisely as to where they want their essays written. There are many reasons why it is better to chose us over other companies in the same platform.